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Old 14th May 2007 | 09:42
  #8 (permalink)  
Mike Cross
 
Joined: Sep 2002
Posts: 1,784
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From: Savannah GA & Portsmouth UK
Chilli

I think where we differ is in how you value the a/c compared with how I value it.

To me the a/c has a market value, which is what someone would be prepared to pay for it, as it stands, now, in the condition it is in now, with the accumulated hours it has now. This is not related to what was paid for it when it was bought or what was paid for the share last time it changed hands, how many hours it has done since it changed hands, or what has been spent on it since it changed hands. Nor is it related to whatever engine fund or spares holding comes with it.

It's a price you think the aircraft would fetch now on the open market.


However the buyer may not just be buying a share in the aircraft, he might indeed be buying a share in the engine fund, and one fifth share of 5k in the bank is 1k.

I suspect you're looking at what the vendor paid for his share as the basis for valuation, I'm looking at the value of the aircraft.

Mike
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